Last updated May 8th, 2025.
We usually focus on Asia’s countless opportunities for profit. Generally speaking, Asia has a very bright future ahead of itself.
The continent’s economic growth rate exceeds practically anywhere in the Western world. This trend appears set to continue in the foreseeable future.
With that said, not every country in Asia has solid economic prospects. That’s the purpose of this article. Knowing where not to invest is equally as important as knowing where you should.
The hard truth is that, while plenty of investment gurus will tell you where you should invest, few will tell you where you shouldn’t.
And that’s where we come in.
We’ll say it loud: investing in Brunei is something to avoid at all costs. This wealthy, oil-rich sultanate of 400,000 people is heading in the wrong direction, and they don’t even seem to be aware of it.
Below are several reasons why, other than North Korea, Brunei is the worst country in Asia to invest.
Brunei’s Nearly Endless Recession
We’re not in 2020 anymore. Yet Brunei still suffers from one of Southeast Asia’s worst economies.
Brunei’s weak economy posted only four years of GDP growth over the past decade. The IMF and World Bank predict sluggish growth in the immediate future, too.
GDP growth in Brunei fell by 0.8% last year, which ranks it among Asia’s worst economies in a region of mostly winners.
Why has Brunei barely escaped recession a decade after the last global financial crisis? Low oil prices are a primary contributor to the problem.
Vast oil reserves once made Brunei the wealthiest country in Southeast Asia on a per capita basis. The nation barely diversified its economy outside the oil and gas sector, though.
That’s in stark contrast to Dubai or neighboring Malaysia, for example, which used their oil money to become top financial hubs. Brunei suffers from abysmal long-term planning in comparison.
With crude oil prices still far lower than the mid-$100 level previously seen, it’s easy to understand why Brunei is now going through some rough times.
Two additional reasons below certainly don’t help Brunei’s status as the worst country to invest in Asia either.
Brunei is oil-rich and boasts one of the world’s highest energy reserves per capita. Unfortunately, that’s about all they can offer you.
Brunei isn’t Friendly to Foreign Investors
Brunei is also one of the most difficult places to invest in Asia – especially as a foreigner. Here are a few good examples.
Foreign investors cannot own property in Brunei. You could not even get a long-term lease on real estate up until recently.
The government began allowing non-citizens to lease property for a maximum term of 99 years back in 2017, and only because the economy was in such dire straits they needed to find a way to invite more investors.
Yet this small, practically meaningless step toward business deregulation doesn’t help Brunei at all. A leasehold extension also doesn’t attract any significant amount of capital or foreign business as the government might have hoped.
It’s too little and far too late. Foreign investors who knew better have chosen better options nearby, such as Malaysia, where you can own land on a freehold basis. And anyone who may still be pondering Brunei should also know it by now.
Furthermore, Brunei still doesn’t have a stock exchange. There have been talks about it, and you can find news reports about the Minister of Finance stating that, for the country to have a stock exchange, the majority of its citizens must be more educated first.
The fact that you can’t buy equities or real estate in Brunei leaves foreign investors with only one feasible option: starting a local company.
You shouldn’t be surprised that doing business in Brunei is also an absolute pain. Every other type of investment in Brunei is, too, after all.
The government is difficult to work with, and Brunei’s energy sector is about the only industry with any resemblance of decent long-term prospects.
Creeping Islamization and Sharia Law
This reason might be controversial. We should clarify that Muslim countries aren’t necessarily bad to invest in.
For example, Indonesia, Malaysia, the UAE, and many other Muslim-majority nations are doing fine economically.
Brunei is taking things to a whole different level, though. They’re less like “Malaysia” and more “Saudi Arabia” with regard to the legal direction they’re going.
Hassanal Bolkiah, Sultan of Brunei and among the world’s richest men, is overseeing Brunei’s transition toward a system of Sharia law.
Sharia law will replace existing ones in several planned phases, and the transformation will apparently finish in 2035.
Until then, Brunei’s Sultan is pushing forth laws that involve banning Christmas celebrations, stoning adulterers, and cutting off the limbs of thieves.
We aren’t here to criticize people’s religion. Our site is about investments in Asia – not social commentary.
But hopefully, you can understand why such factors would make foreigners reluctant to live or invest in Brunei. It directly leads to declining foreign capital, which means weaker economic growth.
Put simply, you should strongly reconsider if you’re thinking of starting a business or otherwise investing in Brunei.
Don’t go to the worst country to invest in Asia. Start looking at the region’s best places to invest instead.
EDITOR’S UPDATE: This article has been read by over 50,000 people in Brunei since it was initially published. That’s over 10% of the entire country’s population, and the numbers keep increasing.
Naturally, locals have given us a lot of hate (and some support!) because we said Brunei is the worst country to invest in Asia.
The truth often hurts. InvestAsian will continue telling our readers the facts about places that aren’t competitive, though.
Brunei’s situation might improve if locals were less eager to defend an economy that has been in recession for most of the past decade.
FAQs: Investing in Brunei
Why is Brunei Considered the Worst Country to Invest in Asia?
Brunei has faced nearly a decade of economic stagnation, with only four years of GDP growth in the past ten years. Its overreliance on oil and gas, without significant diversification like neighboring countries such as Malaysia, has left it vulnerable to low oil prices.
Can Foreigners Buy Property in Brunei?
Foreign investors cannot own property in Brunei outright. The government only began allowing non-citizens to lease property for up to 99 years in 2017 as an attempt to attract investors during economic struggles.
However, this leasehold arrangement is not enticing enough compared to nearby countries like Malaysia, where foreigners can own land on a freehold basis.
Does Brunei Have a Stock Exchange?
No, Brunei doesn't have a stock exchange. While there have been discussions about establishing one, the government has stated that the majority of its citizens need to be more financially educated before such an initiative can proceed.
This lack of a stock exchange limits investment opportunities for foreigners to setting up local businesses, which is also notoriously difficult due to the challenging regulatory environment.
Are There Better Investment Options in Asia Compared to Brunei?
Yes, neighboring countries like Malaysia and Indonesia offer far more favorable conditions for foreign investors.
Malaysia allows land ownership on a freehold basis, and its economy is well-diversified beyond oil and gas. Indonesia, with its growing middle class and vibrant stock market, also provides greater opportunities for portfolio diversification.
